Today the U.S. House of Representatives voted against legislation that would have allowed homeowners to modify their loans on a principal residence in a bankruptcy case (Chapter 13).    This is at least the second time this amendment has come up for vote, and this time only 50 democrats voted in favor.   Thus, the bankruptcy law remains unchanged on this issue.  Loans against a principal residence cannot be modified in a bankruptcy case (except that in some circumstances–and only in some districts– a junior lien may be removed if and only if the value of the property is less than the amount owed to the 1st mortgage).

If you want to know how your Member of Congress voted today, go to http://clerk.house.gov/evs/2009/roll963.xml.  If you want to compare your Representative’s vote today with that on H.R. 1106, go to

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This week, many November numbers about money and credit were released, with some surprising findings. Here’s a summary of a few important figures.

November Consumer Bankruptcy Filings Down 18 Percent

The American Bankruptcy Institute (ABI) reports that personal bankruptcy filings decreased 18 percent last month, compared to October’s numbers. Specifically:

• Total filings: 112,152 consumers filed for bankruptcy in November 2009, compared with 135,913 in October.
• Increase from 2008: A year ago, in November 2008, 99,925 consumers filed for bankruptcy. This year’s figure represents a 12 percent jump.
• Chapter 13 filings: Only 29 percent of consumers who filed for bankruptcy did so under Chapter 13 of the U.S. Bankr

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–> There are reasons that you may feel inclined towards filing a bankruptcy but experts say that it should be avoided because it has a very long lasting effect on your credit score. A benefit that bankruptcy can bring you is that if you file for chapter 7 bankruptcy you can immediately get rid of all harassment endowed by your creditors. No creditor can make any further debt collecting efforts or foreclosure. Once you file bankruptcy you need to wait for the court to inform all your creditors which is does in the time of two weeks. The court mails a notice to everyone in your list of creditors, if you cannot wait for that long you can ask your representative to inform the creditor. Full Post…

You may remember from an earlier post that you are probably an “assisted person”.  Another of our posts explained to you that your bankruptcy lawyer seems to be a “Debt Relief Agency”.

What do “Debt Relief Agencies” do for “assisted persons”.  It seems that Congress thinks that they give “bankruptcy assistance”.

Here’s what the Bankruptcy Code says:

The term “bankruptcy assistance” means any goods or services sold or otherwise provided to an assisted person with the express or implied purpose of providing information, advice, counsel, document preparation, or filing, or attendance at a creditors’ meeting or appearing in a case or proceeding on behalf of another or providing legal representation with respect to a case or proceeding under this title.

Why does the Bankruptcy Code make this so complicated?  For the past 35 years, I alw

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